ARM Holdings PLC Sponsored ADR (ARM) vs Texas Instruments Incorporated (TXN)

ARM Holdings PLC Sponsored ADR and Texas Instruments Incorporated are both Semiconductors companies. Texas Instruments Incorporated is the larger, with a market value of $283.1B against $217.6B — 1.3× the size. Texas Instruments Incorporated trades at the lower P/E: 39.8× against 233×. ARM Holdings PLC Sponsored ADR grew revenue faster over the last twelve months: 23.8% against 20.3%. Texas Instruments Incorporated has the higher net margin (34.1% vs 17.1%) and the higher return on invested capital (21.5% vs 10.5%). Across the 22 metrics below, Texas Instruments Incorporated leads on 14 and ARM Holdings PLC Sponsored ADR on 8.

Valuation

Metric ARM TXN Semiconductors median
P/E 232.56 39.77 44.73
P/S 39.66 13.63 6.85
P/B 23.84 14.76 5.06
Price to free cash flow 184.41 38.50 57.33
EV/EBITDA 176.82 26.90 22.12
EV/Sales 38.99 13.90 6.85
Earnings yield 0.43% 2.51% 0.84%
Free cash flow yield 0.54% 2.60% 0.81%

Profitability

Metric ARM TXN Semiconductors median
Gross margin 97.44% 60.24% 52.12%
Operating margin 16.75% 40.76% 7.34%
Net margin 17.13% 34.12% 3.87%
Free cash flow margin 21.50% 35.42% 4.86%
Return on equity 11.35% 39.57% 1.15%
Return on assets 8.86% 19.72% 2.03%
Return on invested capital 10.46% 21.51% 2.66%

Growth

Metric ARM TXN Semiconductors median
Revenue growth (TTM) 23.84% 20.27% 17.60%
EPS growth (last fiscal year) 13.33% 4.81% 27.88%
Revenue growth, 5-year CAGR 12.73% 4.10% 5.14%
Net income growth, 5-year CAGR 10.49% (2.23%) 0.00%

Health

Metric ARM TXN Semiconductors median
Debt to equity 0.00 0.71 0.13
Current ratio 6.35 5.60 3.35
Net debt to EBITDA (3.13) 1.14 0.58

Dividend

Metric ARM TXN Semiconductors median
Dividend yield — 1.87% 1.37%
Payout ratio — 0.75 0.40

Size

Metric ARM TXN Semiconductors median
Market cap 217.60b 283.10b 5.52b

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